Eu Unveils Revolutionary Digital Package To Boost Competitiveness
The European Commission has unveiled a comprehensive digital package designed to boost …
19. November 2025
Eu Unveils Revolutionary Digital Package To Boost Competitiveness
The European Commission has unveiled a comprehensive digital package designed to boost Europe’s digital competitiveness. The initiative includes significant changes to fintech, AI, data, and cybersecurity regulations, aiming to save businesses billions of euros while streamlining how companies operate across borders in the single market.
At the heart of the package is the digital omnibus, a major legislative proposal that reorganizes and simplifies existing EU digital rules. This sweeping reform aims to cut administrative burdens by at least 25% — and 35% for small and medium-sized enterprises (SMEs) — by 2029. One key aspect of the omnibus is its alignment with practical tools, standards, and guidance.
The Commission plans to delay enforcing high-risk AI obligations until these support mechanisms are in place. This approach ensures that companies, particularly smaller firms, are not penalized before they have the resources to comply. The timeline for enforcing high-risk rules will be capped at a maximum of 16 months.
The proposal also introduces targeted amendments to the AI Act, including extensions of simplified compliance requirements for SMEs and small mid-cap companies. This move is expected to save at least €225 million annually. Additionally, it expands access to regulatory sandboxes to encourage safe testing of AI in areas like automotive manufacturing.
Strengthening the EU’s AI Office will centralize oversight of general-purpose AI systems and reduce fragmented governance across Member States. These changes reflect longstanding concerns from industry that the AI Act could impose heavy compliance burdens without adequate support.
Cybersecurity reporting is another key area addressed by the omnibus. Currently, firms must report under multiple pieces of legislation, often duplicating efforts. The new unified interface will allow companies to submit reports once through a secure portal, routing information to the appropriate authorities. This change aims to significantly lower administrative costs, particularly for companies operating in multiple EU countries.
The package also includes targeted amendments to the GDPR, seeking to harmonize divergent national interpretations, clarify ambiguities, and reduce compliance complexity without altering the GDPR’s foundational principles. The goal is to encourage innovation and ease common pain points for businesses while preserving Europe’s high data-protection standards.
One of the most visible changes for everyday internet users will be the modernization of cookie consent rules. The proposal aims to dramatically cut back on pop-up fatigue by allowing users to set preferences centrally within browsers or operating systems.
Access to high-quality data remains a critical issue for European AI developers. The omnibus proposes consolidating several data laws into the Data Act, introducing model contractual terms and standard clauses, and allowing exemptions from certain cloud-switching obligations. These measures aim to make more data usable and easier to access, strengthening Europe’s position in the global AI race.
The new Data Union Strategy outlines measures to expand access to high-quality datasets through instruments such as data labs and a new Data Act Legal Helpdesk. These tools are expected to help businesses navigate complex data-sharing rules and support compliance. The strategy also emphasizes Europe’s desire to guard against misuse of EU-generated data abroad, proposing mechanisms like an anti-leakage toolbox and guidelines for evaluating how EU data is handled in third countries.
The emphasis on sovereignty reflects growing geopolitical concerns about control over critical technological infrastructure and datasets — particularly in fields like AI training, cloud computing, and advanced industrial analytics. By expanding access to high-quality data, the Commission aims to bolster Europe’s competitiveness while protecting its citizens’ rights.
Perhaps the most transformative proposal is the European Business Wallet, a secure digital credential system intended to standardize how companies identify themselves and exchange documents across the EU. Through the wallet, companies will be able to sign documents, verify their identity, store certificates, and communicate securely with public administrations in any Member State. Processes that currently require physical presence or paper documentation — such as tax filings, registrations, and cross-border expansion — will become faster and cheaper.
If widely adopted, the Commission estimates the wallet could unlock up to €150 billion in savings each year by eliminating duplicated procedures and simplifying regulatory interactions. The implications extend beyond cost savings: the wallet could create a seamless business environment that mirrors the benefits individuals enjoy under the EU Digital Identity Wallet, helping firms scale across borders with fewer administrative barriers.
The omnibus proposals will now be considered by the European Parliament and the Council. The Commission also launched a public consultation for the Digital Fitness Check, open until March 11, 2026. This initiative will evaluate how well existing digital rules meet competitiveness goals and whether further legislative streamlining is needed.
In addition, the EC has initiated three market investigations concerning cloud computing services under the landmark Digital Markets Act. These investigations aim to address concerns around data portability, interoperability, and innovation in the cloud sector.
The European Commission’s digital package represents a significant step forward in boosting Europe’s competitiveness while preserving fundamental rights. By streamlining regulatory requirements, expanding access to high-quality data, and introducing more practical tools for businesses, the Commission aims to create a seamless business environment that supports innovation and growth across the EU.
As the Commission continues to work on further refining its digital framework, it is essential to recognize the complex interplay between technology, regulation, and societal benefits. By engaging with stakeholders, industry, and civil society, the Commission can ensure that its efforts strike a balance between competitiveness and protection of fundamental rights.
The emphasis on data governance and sovereignty underscores Europe’s commitment to fostering a thriving digital economy while safeguarding the interests of citizens. The European Commission’s comprehensive approach aims to create a robust regulatory environment that balances growth with security, innovation with compliance, and data access with data protection.